Advance pricing agreements

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Jayesh Rathor

Student

55 Points Joined February 2016

Can anyone explain what is advance pricing agreements in short. Please help me to understand this concept. Regards.

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Guest

An advance pricing agreement (APA) is an ahead-of-time agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology (TPM) for a set of transactions at issue over a fixed period of time (called "Covered Transactions").